Saved Help Save & Exit Submis Chapter 12 Check my work Required information (The

Question

Saved Help Save & Exit Submis Chapter 12 Check my work Required information (The following information applies to the questions displayed below) Kosmier Company has outstanding 500,000 shares of $50 par value common stock that originally sold for $60 per share. During the three most recent years, the company carried out the following activities in the order presented declared and distributed a 10 percent stock dividend, declared and paid a cash dividend of $1 per share, declared and distributed a 2-for-1 stock split, and declared and paid a $0 60 per share cash dividend b. Determine the amount of cash that the company paid in the four transactions described above K Prev4 5 of5 Next>

Explanation / Answer

Stock Dividend = 500000 shares * 10% = 50000 shares

Total Shares = 550000 shares

Stock Split Ratio = 2 : 1

Split Stock = 550000 * 2 = 1100000 shares

Total Cash Paid :-

No Cash is paid out with a stock dividend or a stock split : 220 shases ((100 shares * 1.10) * 2)

550000 shares at $1 $550000 1100000 shares at $0.60 $660000 Total Cash Paid $1210000

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